Navy awards $49M P-8A facility construction contract to Whiting-Turner Contracting Company

Contract Overview

Contract Amount: $48,993,063 ($49.0M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Defense

Start Date: 2009-09-04

End Date: 2011-09-05

Contract Duration: 731 days

Daily Burn Rate: $67.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: OPERATIONS FACILITY FOR MMA P-8A

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32212

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $49.0 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: OPERATIONS FACILITY FOR MMA P-8A Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $49 million for industrial building construction indicates a significant investment. 3. Fixed-price contract type may offer cost certainty for the government, shifting risk to the contractor. 4. The duration of 731 days suggests a complex and lengthy construction project. 5. Awarded by the Department of the Navy, this contract supports aviation infrastructure. 6. The contractor, Whiting-Turner Contracting Company, has a history of large-scale construction projects.

Value Assessment

Rating: good

The contract value of $49 million for the P-8A operations facility appears to be within a reasonable range for a project of this scale and complexity, especially considering it's a fixed-price contract. Benchmarking against similar large-scale industrial construction projects for military aviation facilities would provide a more precise value-for-money assessment. The fixed-price nature suggests the government aimed for cost predictability, though it relies on the contractor's accurate cost estimation and efficient execution to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 21 bids suggests a robust competitive environment, which typically drives down prices and encourages innovation. The high number of bidders implies that the market for this type of construction service is healthy and that the Navy likely received a range of proposals to choose from, potentially leading to a more favorable price and better terms.

Taxpayer Impact: A high level of competition benefits taxpayers by increasing the likelihood of securing the best possible price and quality for the facility. It reduces the risk of overpayment and ensures that public funds are used efficiently.

Public Impact

The primary beneficiaries are the U.S. Navy personnel who will utilize the P-8A operations facility. The contract delivers essential infrastructure for the maintenance, training, and operational support of the P-8A Poseidon aircraft. The geographic impact is concentrated in Florida, where the facility will be constructed. The project will likely create numerous jobs in the construction sector, including skilled trades and project management roles in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Delays in construction could impact the operational readiness and deployment schedules of the P-8A aircraft.
Ensuring compliance with stringent military construction standards and environmental regulations requires careful oversight.

Positive Signals

Awarded through full and open competition with a significant number of bidders, indicating strong market interest and potential for competitive pricing.
The fixed-price contract type provides cost certainty for the government, assuming the contractor manages risks effectively.
The contractor, Whiting-Turner Contracting Company, is a reputable firm with experience in large-scale construction projects.

Sector Analysis

This contract falls within the Industrial Building Construction sector, specifically supporting defense infrastructure. The market for large-scale military facility construction is characterized by specialized requirements, stringent security protocols, and often involves significant government investment. Comparable spending benchmarks would involve analyzing other contracts for similar aviation support facilities or large industrial construction projects awarded by the Department of Defense or other federal agencies.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is a large entity, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on the prime contractor's strategy and the specific requirements of the construction project.

Oversight & Accountability

Oversight for this contract would primarily be managed by the Department of the Navy's contracting and engineering departments. Accountability measures are embedded in the fixed-price contract terms, requiring the contractor to deliver the facility according to specifications and schedule. Transparency is facilitated through contract award databases, though detailed project progress reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

P-8A Poseidon Aircraft Program
Naval Air Station Construction Projects
Military Aviation Infrastructure Development
Department of Defense Facilities Management

Risk Flags

Potential for construction delays impacting operational readiness.
Risk of cost overruns if unforeseen site conditions or material costs arise.
Ensuring adherence to stringent military construction standards and quality control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.0 million to WHITING-TURNER CONTRACTING COMPANY, THE. OPERATIONS FACILITY FOR MMA P-8A

Who is the contractor on this award?

The obligated recipient is WHITING-TURNER CONTRACTING COMPANY, THE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $49.0 million.

What is the period of performance?

Start: 2009-09-04. End: 2011-09-05.

What is Whiting-Turner Contracting Company's track record with large federal construction projects, particularly for the Department of Defense?

Whiting-Turner Contracting Company has a substantial track record of executing large-scale construction projects across various sectors, including significant work for the federal government and the Department of Defense. They have been involved in building complex facilities such as research laboratories, educational institutions, healthcare centers, and industrial buildings. Their experience often includes adhering to strict government regulations, security requirements, and project timelines. While specific details on past defense contracts would require deeper database searches, their general profile suggests they are well-equipped to handle a project of this magnitude and complexity, often demonstrating capabilities in managing budgets and schedules for high-value construction endeavors.

How does the $49 million award compare to the typical cost of similar P-8A support facilities?

Directly comparing the $49 million award for this specific P-8A operations facility to 'typical' costs is challenging without access to a comprehensive database of comparable projects. Factors such as location, specific functional requirements (e.g., maintenance bays, training simulators, administrative space), site preparation needs, and the prevailing economic conditions at the time of bidding significantly influence construction costs. However, for a large, specialized industrial facility supporting advanced military aircraft, $49 million is within the expected range for a project of this nature. A more precise benchmark would involve analyzing other fixed-price contracts for similar military aviation support infrastructure awarded by the Navy or Air Force over the past five years, adjusting for inflation and regional cost differences.

What are the primary risks associated with a fixed-price contract for a large construction project like this?

The primary risk with a fixed-price contract for a large construction project lies with the contractor, who assumes the burden of cost overruns. However, for the government, risks can include the contractor cutting corners on quality to maintain profitability, potential delays if the contractor faces financial difficulties or underestimates complexity, and less flexibility to incorporate design changes mid-project without incurring significant change order costs. For this P-8A facility, risks could involve unforeseen site conditions (e.g., soil issues, environmental remediation), material price volatility not fully accounted for, or labor shortages impacting the schedule. Effective government oversight is crucial to mitigate these risks by ensuring quality control and monitoring progress closely.

How effective is 'full and open competition' in ensuring value for money in large defense construction contracts?

Full and open competition is generally considered the most effective method for ensuring value for money in large defense construction contracts. By allowing all responsible sources to bid, it fosters a competitive environment that drives down prices and encourages contractors to offer their best technical solutions and pricing. The high number of bidders (21 in this case) suggests that the market was robust and that the Navy likely received competitive proposals. This process increases transparency and reduces the likelihood of contractors colluding or receiving preferential treatment. However, the ultimate value for money also depends on the clarity of the solicitation requirements, the thoroughness of the evaluation process, and the government's ability to manage the contract effectively post-award.

What are the historical spending patterns for P-8A related infrastructure by the Department of the Navy?

Historical spending patterns for P-8A related infrastructure by the Department of the Navy would likely show a consistent investment in facilities necessary for the operation, maintenance, and training associated with this maritime patrol aircraft. This includes spending on hangars, maintenance depots, training facilities, and administrative buildings at various naval air stations. The total expenditure would fluctuate based on the aircraft's fleet introduction phase, upgrades, and geographic basing decisions. Analyzing past contracts for similar facilities would reveal trends in contract types (e.g., fixed-price vs. cost-plus), average contract values, and the prevalence of full and open competition versus other procurement methods for such infrastructure projects.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: N6945009R1291

Offers Received: 21

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 E JOPPA RD, BALTIMORE, MD, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $48,993,063

Exercised Options: $48,993,063

Current Obligation: $48,993,063

Contract Characteristics

Cost or Pricing Data: NO

Timeline